Department of Management and Accounting, Technical and Vocational University (TVU), Tehran, Iran
10.22108/far.2026.150061.2242
Abstract
Stock returns are a key criterion for investors’ decisions, yet firms with similar levels of stock illiquidity do not necessarily experience identical returns; this heterogeneity indicates that market-based characteristics alone are insufficient and that the quality of the firm’s internal information environment also plays a role. This study aims to examine the effect of stock illiquidity on stock returns and the moderating role of management accounting practices in this relationship. The statistical population consists of firms listed on the Tehran Stock Exchange, and the sample includes 162 firms over the period 2017–2024 (1,296 firm-year observations), selected through systematic elimination. Data were analyzed using panel regression with fixed effects. The results show that stock illiquidity has a significant negative effect on stock returns, and management accounting practices significantly weaken this relationship; firms with higher levels of these practices experience a smaller decline in returns under similar illiquidity conditions. These findings highlight the importance of internal information systems in mitigating the adverse effects of capital-market frictions.
Khorramdel Masouleh, Z. (2026). The Role of Management Accounting Practices in Strengthening or Weakening the Effect of Stock Illiquidity on Stock Returns. Financial Accounting Research, (), -. doi: 10.22108/far.2026.150061.2242
MLA
Khorramdel Masouleh, Z. . "The Role of Management Accounting Practices in Strengthening or Weakening the Effect of Stock Illiquidity on Stock Returns", Financial Accounting Research, , , 2026, -. doi: 10.22108/far.2026.150061.2242
HARVARD
Khorramdel Masouleh, Z. (2026). 'The Role of Management Accounting Practices in Strengthening or Weakening the Effect of Stock Illiquidity on Stock Returns', Financial Accounting Research, (), pp. -. doi: 10.22108/far.2026.150061.2242
CHICAGO
Z. Khorramdel Masouleh, "The Role of Management Accounting Practices in Strengthening or Weakening the Effect of Stock Illiquidity on Stock Returns," Financial Accounting Research, (2026): -, doi: 10.22108/far.2026.150061.2242
VANCOUVER
Khorramdel Masouleh, Z. The Role of Management Accounting Practices in Strengthening or Weakening the Effect of Stock Illiquidity on Stock Returns. Financial Accounting Research, 2026; (): -. doi: 10.22108/far.2026.150061.2242
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